23 Feb How to Prepare to Sell Your Business in the Next 5 Years
Ask Me Anything: The Nuts and Bolts of Selling a Business in 2025
Question:
Do you have any tips for owners who might sell their business in next five years?
Answer:
A great first step in any business exit strategy is to simply think like a buyer. Imagine you are looking to buy out your competitor. What would you want to see in their company before spending your hard-earned dollars?
First, you would likely want the reassurance of a strong, capable management team that isn’t on the verge of retirement. Second, you’d want to see a track record of sustainable growth—meaning revenues are climbing without requiring disproportionate spending on new capital equipment. Finally, you would want clear, organized data. Think about the reports you would ask for, like customer concentration or product trends. Figure out exactly what data you would want to see as a buyer, and make sure your team starts tracking those metrics right now.
During the 2024 Managing and Accounting Practice (MAP) Conference hosted by the Massachusetts Society of CPAs (MassCPAs), Beacon Equity Advisors presented an AMA (Ask Me Anything) to the CPA firm partners attending. We thought we would share some of their questions and our answers.